Oklahoma Senate Bill SB1717

Oklahoma 2022 Regular Session

• Introduced: 2/7/22
• Refer: 2/8/22

Caption

State government; establishing Oklahoma Bullion Depository in the State Treasurer Office. Effective date.

Impact

The legislation introduces a framework for the handling of precious metals, including gold and silver, and sets regulations for authorized operations within the depository. It mandates transparency in procedures involving deposits, withdrawals, and transfers of bullion, establishing processes to ensure compliance with state and national standards. Additionally, the depository is restricted from engaging in certain financial transactions with the metals, reinforcing its role as a secure storage and custodian rather than an active trader or broker in precious metals.

Summary

SB1717 establishes the Oklahoma Bullion Depository within the Office of the State Treasurer, aiming to create a secure facility for the deposit and storage of precious metals. The bill delineates the administrative structures, including the roles of an appointed administrator and deputy administrator responsible for overseeing the depository’s operations. Notably, the law specifies that deposits made to this depository will not be considered part of the General Revenue Fund and will not be subject to appropriations, thereby providing a layer of protection for deposits against state financial leverage.

Contention

Certain provisions within SB1717 may raise concerns about the restrictions on the depository's operations. Critics of these regulations argue that prohibiting actions like leasing and engaging in derivatives trading could limit the liquidity and utility of the depository for investors looking to manage their precious metals. Furthermore, the specification that the deposits won't count towards the state's revenue cap could stir debate over fiscal responsibility and future budgeting discussions, as it creates a compartmentalized fund that does not contribute to the state’s financial positions.